5747.23
Taxing trust income.

(A)
With
respect to a trust, one or more of the beneficiaries of which are liable for
the tax imposed by section
5747.02 of the Revised Code, the
business income and deductions included in the income of such trust shall be
allocated to this state in the hands of such trust pursuant to section
5747.21 of the Revised Code. Such
trust business income and deductions shall then be allocated to the
beneficiaries in proportion to their right to share in the business income of
such trust to the extent of the distribution made to the beneficiary.

(B)
With respect to a trust
described in division (A) of this section, the nonbusiness income and
deductions included in the income of such trust shall be allocated to the
beneficiaries in proportion to their right to share in such income and
deductions of the trust, and then the share of each beneficiary shall be
allocated to this state in the hands of such beneficiary pursuant to section
5747.20 of the Revised Code.